Building an Economic Relationship

China and Pakistan launch economic corridor plan worth $46 billion

I copied and pasted this article is from Reuters.  Reviving the Silk Road/Route (same thing) through China’s Xinjiang to Pakistan, and a sea route in the Arabian Sea at Gwadar Port.  Both U.S. and China agree to try and stabilize the Pakistani government, fight militancy, among a couple of other things.  If you go to the source (link at the bottom), there are a couple of videos.

Mon Apr 20, 2015 1:31pm EDT

(Reuters) – China and Pakistan launched a plan on Monday for energy and infrastructure projects in Pakistan worth $46 billion, linking their economies and underscoring China’s economic ambitions in Asia and beyond.

China’s President Xi Jinping arrived in Pakistan to oversee the signing of agreements aimed at establishing a China-Pakistan Economic Corridor between Pakistan’s southern Gwadar port on the Arabian Sea and China’s western Xinjiang region.

The plan, which would eclipse U.S. spending in Pakistan over the last decade or so, is part of China’s aim to forge “Silk Road” land and sea ties to markets in the Middle East and Europe.

Xi, whose visit to Pakistan winds up on Tuesday, said it cemented an “all-weather strategic cooperative partnership” between the neighbors.

Pakistani Prime Minister Nawaz Sharif said the corridor would transform Pakistan into a regional hub and give China a shorter and cheaper route for trade with much of Asia, the Middle East and Africa.

“Friendship with China is the cornerstone of Pakistan’s foreign policy,” Sharif said in a speech.

The corridor, a network of roads, railways and pipelines, will pass through Pakistan’s poor Baluchistan province, where a long-running separatist insurgency that the army has vowed to crush will raise questions about the feasibility of the plan.

China is also worried about Muslim separatists from Xinjiang teaming up with Pakistani militants. Although Xi did not refer to the issue on Monday, he linked economic cooperation with security in a statement on Sunday.

“Our cooperation in the security and economic fields reinforce each other, and they must be advanced simultaneously,” he said.

Sharif added: “I assured President Xi that Pakistan considers China’s security as important as its own security.”

Xi called for greater efforts to bring peace to Afghanistan, where Pakistan is keen to restrict the influence of its rival India.

The two sides also agreed to strengthen cooperation in civil nuclear energy, space and maritime technology, counter-terrorism and defense.


Pakistan says China will provide up to $37 billion in investment for energy projects to generate 16,400 MW of power. Concessional loans will cover nearly $10 billion of infrastructure projects.

The planned Chinese spending exceeds that of the United States, which has given $31 billion to Pakistan since 2002, according to the Congressional Research Service. About two-thirds of that was earmarked for security.

Despite Chinese-U.S. competition for influence across Asia, they share interests inPakistan. Both want a stable government fighting militancy, said Andrew Small, author of a book on China-Pakistan relations.

“China would like U.S. support for Pakistan to continue, in terms of aid, selling arms, and other support,” Small told Reuters.

Few details of the projects have been finalised, and it is not only the Baluchistan insurgency that stands in the way of the ambitious vision becoming reality.

Xi may seek assurances that Pakistan will rein in corruption and that leaders from rival political parties are willing to make a long-term commitment.

“We should be cautious because of Pakistan itself, not China,” said Imtiaz Gul of the Center for Research and Security Studies, adding that Pakistan’s bureaucracy, political leadership and national unity would be tested as China seeks to build trade links.

Pakistani officials have said China’s government and banks, including China Development Bank [CHDB.UL] and the Industrial and Commercial Bank of China Ltd, will lend to Chinese companies, which will invest in projects as commercial ventures.

Chinese companies investing in the projects will include Three Gorges Corp [CYTGP.UL],China Power International Development Ltd, Huaneng Group [HUANP.UL], ICBC Corporation and Zonergy Corporation, officials said.

Sharif made ending chronic power blackouts a central promise of his 2013 election campaign and will be hoping for an improvement before the next polls in 2018.

(Additional reporting by Mehreen Zahra-Malik; Editing by Robert Birsel, Mike Collett-Whiteand Kevin Liffey)


Published by


I began writing Elle's Adventure in China (EACh) in June 2014 as a fun summer project, but as obstacles kept interfering with my plans, I forked and forked more options. I took writing this novel much more seriously in mid-July, and want to have it officially published someday in my lifetime. As many artists put their hearts into their projects, so do I. I did not start out liking to read, but a professor suggested a book for me for homework a few years ago, and it was an amazing book. Since then, I read for pleasure, and I hope my novel, Elle's Adventure in China, does the same for as many of you as possible. The same thing goes to writing. I did not like to write until I took a course where the professor and papers made me love to write. I hope every one of you find what makes you happy and dedicated to work. In May 2015, I started my other blog, Read and Write Here (R&WH), as a place to post other things that aren't China- and Chinese culture-related and not EACh. I share some of my memories and experiences from student teaching, irregular participation in Daily Prompts, etc. I'd like to have regular people and bloggers to write book reviews and post it on R&WH someday. Keep reading and writing!

Have something to say or ask?

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: